Grant Gross
Senior Writer

Five charged with defrauding E-Rate program

news
Apr 5, 20042 mins

False claims filed on Internet access for schools initiative, feds say

WASHINGTON – Five people have been indicted and four of them arrested on charges of conspiracy, mail fraud and money laundering in connection with a program designed to bring Internet access to schools and libraries, the U.S. Department of Justice (DOJ) announced Monday.

Two of the suspects allegedly filed false claims that they provided services to three Midwestern schools, and were paid more than $1.2 million, under the E-Rate program, which subsidizes Internet-related services for schools and libraries in poor areas, according to the DOJ.

Haider Bokhari, his wife, Kelly Bokhari, his mother, Shahida Bokhari, all from Kenosha, Wisconsin, and brother Qasim Bokhari of St. Petersburg, Florida, were arrested on April 1, in connection with the charges filed under seal on March 16 in the U.S. District Court in Milwaukee and unsealed on April 2. A third brother, Raza Bokhari, was also indicted, but is believed to be residing in Pakistan.

Haider Bokhari and Qasim Bokhari in 2001 submitted invoices and other documents falsely claiming to have provided E-Rate goods and services to two schools in Milwaukee and one school in Chicago, according to the DOJ.

The indictment further charges that Haider Bokhari and Qasim Bokhari conspired with the other family members to hide the activity through several financial transactions, the DOJ said. The alleged financial transactions include wiring more than $600,000 to Pakistan, purchasing a residence in Kenosha, and buying several automobiles.

The conspiracy to commit mail fraud charge and three mail fraud charges brought against Haider Bokhari and Qasim Bokhari each carry a maximum penalty per count of five years in jail and a $250,000 fine. The indictment also charges all five individuals with conspiracy to commit money laundering, and it charges Haider Bokhari, Qasim Bokhari, Shahida Bokhari, and Kelly Bokhari with money laundering, according to the DOJ. The money laundering and conspiracy charges each carry a maximum penalty of 20 years in jail and either a $500,000 fine or twice the value of the property involved in the transactions.

Grant Gross

Grant Gross, a senior writer at CIO, is a long-time IT journalist who has focused on AI, enterprise technology, and tech policy. He previously served as Washington, D.C., correspondent and later senior editor at IDG News Service. Earlier in his career, he was managing editor at Linux.com and news editor at tech careers site Techies.com. As a tech policy expert, he has appeared on C-SPAN and the giant NTN24 Spanish-language cable news network. In the distant past, he worked as a reporter and editor at newspapers in Minnesota and the Dakotas. A finalist for Best Range of Work by a Single Author for both the Eddie Awards and the Neal Awards, Grant was recently recognized with an ASBPE Regional Silver award for his article “Agentic AI: Decisive, operational AI arrives in business.”

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